partners and their rights - Skyline E-Learning

types of partners and their rights. partner is the one who has agreed to contribute a certain sum to a partnership business and is prevented by law from taking any active part in the management and administration of the business.

Business partners are individuals or entities that collaborate in a business venture with the shared goal of achieving mutual benefits and objectives. A business partner can refer to various types of relationships, including:

Co-owners or Co-founders: Business partners can be individuals who jointly own and operate a business. They typically contribute capital, expertise, or resources to the business and share in the profits, losses, and decision-making.

Strategic Partners: Strategic partners are entities or individuals with complementary strengths or resources who form a partnership to enhance their competitive advantage.

They may collaborate on joint marketing initiatives, product development, distribution channels, or other strategic activities.

Suppliers and Vendors: Suppliers and vendors can be considered business partners when they provide goods or services to a company on an ongoing basis.

They play a crucial role in the supply chain and contribute to the success of the business by providing essential inputs.

Distributors and Resellers: Distributors and resellers are business partners who help distribute and sell products or services on behalf of a company.

They often have established networks, market knowledge, and customer relationships that can help expand the reach of a product or service.

Franchisees: In a franchising arrangement, franchisees are business partners who obtain the right to operate a business under an established brand.

They pay fees or royalties to the franchisor and benefit from the franchisor\’s support, training, and brand recognition.

Joint Venture Partners: In a joint venture, two or more parties come together to form a separate legal entity to pursue a specific business opportunity.

Joint venture partners share the risks, costs, and rewards of the venture while maintaining their independent identities.

Investors or Financial Partners: Investors or financial partners provide capital or funding to a business in exchange for equity or ownership stakes.

They contribute financial resources and often play a role in decision-making or strategic guidance.

TYPES OF PARTNERS

Limited partner: A limited type of partner is one who has agreed to contribute a certain sum to a partnership business and is prevented by law from taking any active part in the management and administration of the business.

f $\"PRODUCTION\"$

He is liable for debts and obligations of the partnership only up to the amount of capital he has contributed. A limited partner has limited liability.

General partner: A general partner has the full power of participating in the conduct and management of the partnership business. He is entitled to take a full share in the management of the firm.

This kind of partner is liable to the full extent of his estate for the partnership debts, i.e. he has unlimited liability as types of partners

Active partner: An active partner takes an active part in the management and administration of a partnership business. He contributes to the financing and formation of the business, takes an active role in the day-to-day running of the enterprise and is being paid a certain sum of salary. in all types of partners

Nominal or quasi-partner: A nominal partner contributes only his name to the formation of the business. He neither contribute* capital nor takes part in the management of the firm.

$\"types$

A nominal partner must be a distinguished personality within the society as his name must surely increase the reputation and possibly the goodwill of the partnership business.

This partner will share in the profit or debts of f firm as specified in the Partnership Act of 18 He might be a politician or a successful businessman.

Sleeping or dormant partner: A dormant partner takes no part in the conduct and management of the partnership business. He will contribute capital and share from the profit but will not engage in the day-to-day running of the enterprise, i.e. no active participation in the firm.

A sleeping partner receives no salary but is liable for the debts of the firm. The mere fact that a partner is a dormant one does not exonerate him from liability in the event of a wrong decision by the active types of partners

RIGHTS OF PARTNERS

So what are the rights of partners involved in running a partnership business organization?

The partners are entitled to share the profits of the partnership business.

A partner making an advance beyond the| amount of capital to which he has agreed to subscribe is entitled to an interest of 5%.

A partner has the right to act as the age of the business.

Every general partner can take part in I management of the partnership.

Every type of partner must have access to the partnership books of accounts.

They must be indemnified by the firm in respect of payment made and personal liability incurred by them in the conduct of the business.

FORMATION OF PARTNERSHIP

A partnership business may be established without formality although the partners have certain unavoidable obligations to third parties and make such agreements between themselves in respect of the internal management of the firm.

It is accordingly usual for people in a partnership to express their intention partnership agreement known as deed of partnership. A deed of partnership may be defined as agreements, rules and regulations guiding the members of a partnership.

$\"partnership$ and types of partners